LKQ (NASDAQ:LKQ) Releases Earnings Results, Hits Estimates

LKQ (NASDAQ:LKQ) posted its earnings results on Thursday. The auto parts company reported $0.67 EPS for the quarter, meeting analysts’ consensus estimates of $0.67, Zacks reports. The firm had revenue of $3.47 billion during the quarter, compared to the consensus estimate of $3.39 billion. LKQ had a return on equity of 11.65% and a net margin of 3.71%.The company’s quarterly revenue was up 4.3% compared to the same quarter last year. During the same period in the prior year, the company earned $0.79 EPS. LKQ updated its FY 2026 guidance to 2.900-3.200 EPS.

Here are the key takeaways from LKQ’s conference call:

• North America showed clear signs of stabilization with Q1 organic revenue down only 0.5% per-day (improved vs prior year), repairable claims improving ~2–4%, and alternative-parts utilization near a record ~40%, which management expects to help drive share and margin recovery.
• Management reaffirmed full-year guidance of organic parts & services revenue -0.5% to +1.5%, adjusted EPS $2.90–$3.20, and free cash flow $700M–$850M, while Q1 adjusted EPS was $0.67 (GAAP $0.30 includes a $0.17/share Mekonomen impairment).
• LKQ launched a formal strategic review with Bank of America and Goldman Sachs to evaluate value-creating alternatives (including the previously marketed Specialty business), but the process is early and timing is uncertain due to tighter credit conditions for potential buyers.
• Europe showed month-over-month improvement late in Q1, with private-label penetration up to 25.3% (management plans phased price increases toward 2027) and a recently completed ERP conversion that caused temporary disruption but is expected to enable future cost and integration benefits.
• Balance sheet and capital allocation remain disciplined — total debt ~$3.9B (2.6x leverage), a $500M term loan to be refinanced or extended, a $77M dividend paid in Q1, and management expects to resume share buybacks while delivering strong full-year free cash flow.

LKQ Stock Down 9.7%

Shares of LKQ opened at $28.51 on Friday. The company has a market cap of $7.28 billion, a PE ratio of 12.08 and a beta of 0.88. The business has a fifty day moving average of $30.53 and a 200 day moving average of $31.03. LKQ has a 52-week low of $27.64 and a 52-week high of $42.67. The company has a quick ratio of 0.58, a current ratio of 1.54 and a debt-to-equity ratio of 0.51.

LKQ Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, June 4th. Investors of record on Thursday, May 21st will be given a $0.30 dividend. The ex-dividend date is Thursday, May 21st. This represents a $1.20 dividend on an annualized basis and a yield of 4.2%. LKQ’s dividend payout ratio (DPR) is currently 50.85%.

Institutional Trading of LKQ

Hedge funds and other institutional investors have recently bought and sold shares of the business. Parallel Advisors LLC increased its stake in LKQ by 187.3% in the fourth quarter. Parallel Advisors LLC now owns 4,396 shares of the auto parts company’s stock worth $133,000 after purchasing an additional 2,866 shares during the period. Arkadios Wealth Advisors purchased a new stake in LKQ in the fourth quarter worth $205,000. Horizon Investments LLC increased its stake in LKQ by 78.3% in the third quarter. Horizon Investments LLC now owns 7,417 shares of the auto parts company’s stock worth $227,000 after purchasing an additional 3,258 shares during the period. Integrated Wealth Concepts LLC purchased a new stake in LKQ in the first quarter worth $278,000. Finally, BI Asset Management Fondsmaeglerselskab A S increased its stake in LKQ by 170.0% in the second quarter. BI Asset Management Fondsmaeglerselskab A S now owns 7,886 shares of the auto parts company’s stock worth $292,000 after purchasing an additional 4,965 shares during the period. Hedge funds and other institutional investors own 95.63% of the company’s stock.

LKQ News Summary

Here are the key news stories impacting LKQ this week:

• Positive Sentiment: Board launches strategic review to enhance shareholder value — management said the board has initiated a comprehensive review of strategic alternatives, which investors often view as a path to unlock value (sale, divestiture or other actions). Read More.
• Positive Sentiment: Dividend announced supporting yield — LKQ declared a quarterly cash dividend of $0.30 (4.0% yield), which can attract income-oriented investors and provide a floor for the share price. (Ex-dividend May 21; payable June 4.)
• Neutral Sentiment: Q1 revenue beat but EPS essentially in line — Q1 revenue of ~$3.47B topped estimates and benefited from pricing/mix, but GAAP EPS of $0.67 matched consensus and was down vs. last year, leaving fundamentals mixed. Read More.
• Neutral Sentiment: Q1 presentation and call available — management hosted an earnings call and slide deck that provide more detail on segment performance and margin drivers for investors wanting to re‑assess operational outlook. Read More.
• Negative Sentiment: Updated FY2026 EPS range leaves little upside vs. Street — LKQ set FY26 EPS guidance at $2.90–$3.20 (consensus ~3.03), a range that may disappoint some investors and limit positive revisions. Read More.
• Negative Sentiment: Multiple securities class-action filings and law‑firm alerts — several plaintiff firms (Rosen, Pomerantz, Bronstein/Gewirtz and others) have announced or opened claims relating to alleged disclosures during a prior class period; this increases near‑term legal uncertainty and headline risk. Read More.

Analysts Set New Price Targets

A number of research analysts have recently commented on LKQ shares. Barclays lowered their target price on LKQ from $34.00 to $33.00 and set an “equal weight” rating for the company in a research report on Tuesday, April 7th. Zacks Research downgraded LKQ from a “hold” rating to a “strong sell” rating in a research report on Monday, January 26th. Weiss Ratings reiterated a “sell (d+)” rating on shares of LKQ in a research report on Friday, March 27th. Wall Street Zen downgraded LKQ from a “buy” rating to a “hold” rating in a research report on Sunday, February 22nd. Finally, JPMorgan Chase & Co. lowered their price target on LKQ from $40.00 to $37.00 and set an “overweight” rating for the company in a research report on Monday, February 23rd. Five equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $42.33.

LKQ Company Profile

LKQ Corporation is a leading provider of alternative and specialty parts to repair and accessorize automobiles and other vehicles. The company supplies a broad range of replacement components, including recycled original equipment manufacturer (OEM) parts, aftermarket parts, refurbished and remanufactured items. Its products support collision repair, mechanical repair and performance enhancement needs across passenger cars, heavy trucks and recreational vehicles.

Through a combination of in-house operations and strategic acquisitions, LKQ has developed a comprehensive product portfolio that extends beyond core replacement parts.